Short answer: Yes, it's possible, but lenders have to consider how your income changes during leave and whether you can afford repayments until you return to work. A letter from your employer confirming your return date and salary often helps. Some lenders will assess you on your leave income, others on your return-to-work income, and policies differ a lot.
How lenders look at parental leave
Under responsible lending rules, a licensed lender has to make reasonable inquiries about your financial situation, including changes you can reasonably foresee. Parental leave is one of those. Lenders usually want to know:
- When your leave started or will start, and when you're due back.
- What you're being paid during leave, whether that's employer-paid leave, government Parental Leave Pay or nothing for part of it.
- Whether your job is being held for you, and at what hours and salary.
- How household costs change with a new baby, such as childcare later on.
Income that may be considered
| Income | How it's often treated |
|---|---|
| Employer-paid parental leave | Usually counted for the period it's paid |
| Government Parental Leave Pay | Temporary, so some lenders count it only for the gap it covers |
| Return-to-work salary | Some lenders accept it with an employer letter confirming the return date, hours and pay |
| Partner's income | Counted if they're on the loan as a joint applicant |
| Family Tax Benefit | Some lenders count it as supporting income |
Parental Leave Pay rules and the number of weeks available have changed in recent years, so check the current details with Services Australia.
Documents that help
- An employer letter confirming your role, salary, leave dates and return date (and whether you're returning full-time or part-time)
- Recent payslips from before leave
- Services Australia statements for any Parental Leave Pay or Family Tax Benefit
- Bank statements showing savings and your usual spending
Ways to strengthen the application
- Apply jointly with your partner if they have stable income, keeping in mind you'll both be fully responsible for the debt.
- Show a buffer. Savings that could cover repayments until you're back at work make the loan look more affordable.
- Keep the loan modest. A smaller amount or a deposit reduces the repayment during the tight months.
- Be upfront. Don't leave planned leave off an application. It can lead to a loan you struggle to repay.
Is now the right time?
If you don't urgently need the car, waiting until you're back at work can open up more lenders. If you do need it now, for example a safer family car, a licensed broker can check which lenders will consider your situation before any application goes in.
On parental leave and need a car? Tell us about your situation in about 60 seconds and a licensed broker will call you. No credit check to enquire.
Related guides
- Car finance on parenting payments
- How your partner's credit affects your application
- How much can you borrow?
General information only. This isn't financial advice. Finance the Ride is a referral service and doesn't hold an Australian Credit Licence. Last reviewed September 2026.
